There's another way people in expensive cities are 'penalized,' and they might not know it

When Donald Trump unveiled his proposal to make child care tax deductible, there was one line that went by almost unnoticed. It said the benefit would be capped "at the average cost of care for the state of residence."
Whether or not this ever becomes law, the mention of it is remarkable. Today, virtually no federal taxes are adjusted by regional differences in the cost of living. If you earn $50,000 in an expensive city, you’re taxed just the same as someone earning that salary in a cheap